German, Swiss interest in transcontinental railroad edges out Chinese.
| Autor | Gaudin, Andres |
Plans for a transcontinental railroad to link the Pacific and Atlantic Oceans in South America have greater strength now that the governments of Switzerland and Germany, along with business groups from those countries, are showing interest in helping finance and build the ambitious project. China, previously the railroad's great ally, has now taken a back seat, and there's no longer talk of Asian financing through the Asian Infrastructure Investment Bank (AIIB) or participation of the state-owned China Railway Group (NotiSur, May 28, 2004, Jan. 14, 2005, Jan. 23, 2015 and Oct. 14, 2016).
Bolivia, once the project's sole promoter, seconded by Peru and a now dubious Brazil, has now been joined by the governments of Paraguay and Uruguay. On more than one occasion, Bolivian President Evo Morales has said that the railroad uniting the two oceans is the most concrete and fastest way to end the landlocked situation Bolivia has suffered since the end of the War of the Pacific (1879-1883) when it lost its seaboard to Chile.
New governments make the difference
The outlook for the project began to change once Peru and Brazil installed new governments.
In Peru, the new administration of Pedro Pablo Kuczynski said it was not certain what advantages its participation in the megaproject would offer.
On March 15, however, First Vice President Martin Vizcarra clarified the country's position, saying, "We will grant all facilities for its completion, even in the case that the feasibility studies we may order are negative." Bolivian and Paraguayan analysts agreed that the change in attitude in Lima could be due to Kuczynski's desire to maintain better relations with Germany. Meanwhile, in Brazil, where President Dilma Rousseff (2011-2016) was overthrown last August, relations with Bolivia have been cold. Spokesmen for her replacement, President Michel Temer, now say that Brazil has no preferences as to whether to send its exports via the railroad or the inter-oceanic canal that China is building in Nicaragua (NotiCen, Feb. 5, 2015, Dec. 10, 2015, May 25, 2017). Unlike Peru, Brazil considers linking Atlantic and Pacific ports with a railroad across South America a simple business proposition, not a strong factor of regional integration.
Changes were visible beginning in January. Morales visited Asuncion on New Year's Day to meet with President Horacio Cartes, pick up a Paraguayan proposal that could be decisive for the development of the project, and sign a...
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